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Boeing’s $2.04 billion B-52 engine upgrade contract puts Port San Antonio in the spotlight
2 January 2026
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Boeing’s $2.04 billion B-52 engine upgrade contract puts Port San Antonio in the spotlight

NEW YORK, January 1, 2026, 19:21 ET

  • Boeing won a $2.04 billion U.S. Air Force task order tied to the B-52 Commercial Engine Replacement Program
  • Work is slated for Port San Antonio and three other U.S. sites, with completion expected by May 31, 2033
  • The effort covers integrating and testing new engines on two B-52 aircraft as the Air Force pushes to keep the bomber flying into the 2050s

Boeing (BA.N) has landed a $2.04 billion U.S. Air Force task order to advance the B-52 Commercial Engine Replacement Program, with work planned at Port San Antonio in Texas alongside sites in Oklahoma City, Seattle and Indianapolis. The work is expected to run through May 31, 2033, and begins with about $35.8 million in fiscal 2026 research-and-testing funding, a Defense Department contract notice showed. KSAT

The award matters now because it moves the B-52 re-engining effort into hands-on integration and testing after a major design checkpoint, a step needed to keep the bomber fleet viable for decades. The Air Force expects to operate the roughly 75-aircraft B-52 force into 2050, replacing its aging Pratt & Whitney TF33 engines with Rolls-Royce F130 engines as part of the upgrade, according to reports. Interesting Engineering

For Port San Antonio, the engine work adds to a growing slate of bomber modernization at the former Kelly Air Force Base complex, including radar upgrades, local media reported. “The new radar will significantly increase B-52 mission effectiveness by improving situational awareness, speeding target prosecution and enhancing aircrew survivability in contested environments,” said Troy Dawson, vice president of Boeing Bombers, in a statement. The Government Accountability Office has cited delays and warned that limited integrated testing can raise the risk of costly changes later, the Express-News reported. San Antonio Express-News

The task order is described as “post-critical design review” work — meaning the program has passed a major design lock-in and is shifting from engineering plans to modifying real aircraft.

The B-52 Commercial Engine Replacement Program, often shortened to CERP, is the Air Force’s effort to swap out the bomber’s decades-old engines and update related aircraft systems that interface with the propulsion package.

Boeing’s current work under the order is focused on integrating the new engines and associated subsystems on two B-52 aircraft, a typical step before broader fleet modifications begin.

The contract’s performance sites span Boeing and supplier footprints across the U.S., underlining how the program will be executed as a multi-year, multi-location industrial effort rather than a single-facility retrofit.

The timeline also reflects the long lead times built into major aircraft modernization, where engineering changes, flight-test preparation and certification work can take years even before a wider fleet rollout starts.

For Boeing, the deal extends a long-running bomber support role and brings in a major task order that stretches into the next decade, a period when the company is also trying to steady defense execution on other complex government programs.

The engine change also puts Rolls-Royce at the center of a high-profile U.S. bomber upgrade while displacing Pratt & Whitney’s TF33 powerplants, which have been on the aircraft for decades.

The Air Force has been modernizing the B-52 in parallel tracks — engines, radar and other avionics — to keep a 1950s-era airframe relevant for modern missions, including nuclear and conventional strike.

Next milestones will hinge on how smoothly the integration and testing work proceeds on the first two aircraft and whether the program stays on schedule as funding ramps in fiscal 2026 and beyond.

The work will be overseen by Tinker Air Force Base in Oklahoma, the contract notice said, with completion currently expected by May 2033.

Stock Market Today

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